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Taxation and Capital Structure Choice - Evidence from a Panel of German Multinationals
Buettner, Thiess; Overesch, Michael; Schreiber, Ulrich; … - 2021
from 1996 until 2003. In accordance with the theoretical predictions, the effect of local taxes on leverage is positive for …
Persistent link: https://www.econbiz.de/10013317343
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The impact of introducing an interest barrier : evidence from the German corporation tax reform 2008
Buslei, Hermann; Simmler, Martin - 2012
In this study we investigate the impact of the thin capitalization rule (TCR), introduced in Germany in 2008, on firms' capital structure, investment and profitability. The identification of the causal effects is based on the escape clauses in the regulation using a difference-in-difference...
Persistent link: https://www.econbiz.de/10009579254
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German Inbound Investment, Corporate Tax Planning, and Thin-Capitalization Rules - A Difference-in-Differences Approach
Overesch, Michael; Wamser, Georg - Zentrum für Europäische Wirtschaftsforschung <Mannheim>
Taxes play an important role in determining the capital structure of companies. Consequently,a multinational company would choose its capital structure according to differencesin international taxation. Unlike purely national firms, multinationals can also use intercompanyloans to shift profits...
Persistent link: https://www.econbiz.de/10005860590
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The Impact of Thin-Capitalization Rules on Multinationals' Financing and Investment Decisions
Büttner, Thiess - 2016
This paper analyzes the effectiveness of thin-capitalization rules in preventing debt finance by intercompany loans and explores their consequences for corporate decisions. A theoretical discussion emphasizes that limitations of the deduction of interest owed to foreign affiliates would not only...
Persistent link: https://www.econbiz.de/10012991249
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Leverage, Corporate Taxes and Debt Shifting of Multinationals : The Impact of Firm-Specific Risk
Glogowsky, Ulrich - 2018
Firms have the incentive to enhance debt financing with higher corporate tax rates due to the increased value of interest deductions from the tax base. However, external debt is relatively costly for corporations with a high firm-specific risk. Moreover, for multinationals, the shifting of...
Persistent link: https://www.econbiz.de/10012929192
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Debt and tax planning by multinationals
Sorbe, Stéphane; Johansson, Åsa; Skeie, Øystein Bieltvedt - 2017
Multinational enterprises (MNEs) manipulate the location of their debts to reduce their corporate tax burden. Indeed, by locating debts in higher-tax rate countries, MNEs can deduct interest payments against a higher tax rate. This paper provides evidence of such manipulation of debt location....
Persistent link: https://www.econbiz.de/10011700129
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Tax influence on financial structures of M&As
Harendt, Christoph - 2018
same country increases with the tax rate in that country (though the effect is rather small). As a limitation, I find this … effect only for a sample of all firms and no additional effect in case of M&As (denoted as M&A firms). Since this way of debt …, this effect can only be observed in particular for the subsample of those M&A firms which actually belong to such …
Persistent link: https://www.econbiz.de/10011782963
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The importance of escape clauses : firm response to thin capitalization rules
Andresen, Martin Eckhoff; Thorvaldsen, Lars - 2022
Escape clauses, where small firms are exempt from particular tax rules, is a crucial feature of a number of corporate tax schemes, but creates incentives to avoid taxation by manipulating the measures that determine inclusion. We evaluate the impact of thin capitalization rules, which commonly...
Persistent link: https://www.econbiz.de/10013475261
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The importance of escape clauses : firm response to thin capitalization rules
Andresen, Martin Eckhoff; Thorvaldsen, Lars - 2023
the extent to which thin capitalization rules have the intended effect due to the presence of escape clauses. …
Persistent link: https://www.econbiz.de/10014228279
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Thin capitalization rules and multinational firm capital structure
Blouin, Jennifer L.; Huizinga, Harry; Laeven, Luc; … - 2014
affiliate's debt to assets ratio by 0.8%, which shows that rules targeting internal leverage have an indirect effect on the … capitalization rules, which thus far have been understudied, have a substantial effect on the capital structure within multinational …
Persistent link: https://www.econbiz.de/10010256736